Government finally thinking about differential pricing regime for diesel in India

Government finally thinking about differential pricing regime for diesel in India

Diesel is much cheaper in India when compared to Petrol. One of the primary reasons is that the government gives away more subsidies on diesel because it is used for public transport.

This result in a situation where diesel cars turn out to be much cheaper to run compared to petrol cars. Pretty ironical considering petrol cars in India are more affordable. Of course, two wheelers also use petrol.

The Indian government is finally thinking about implementing a differential pricing regime for diesel in India which could see private car owners paying a higher price for diesel.

Indian oil minister Murli Deora said in a statement: “I don’t comment on my meetings with the PM. All I can say is my ministry is examining options to curb unwarranted spurt in diesel demand which is hurting the state-run oil companies… we are looking at pros and cons and practical difficulties of introducing a differential pricing regime.”